ERA 2025: Neonatal Care Leave — A New Parental Right

The Neonatal Care (Leave and Pay) Act 2023 took effect in April 2025. It gives parents of babies who require neonatal care a right to up to 12 weeks of additional leave and pay, on top of their existing maternity and paternity entitlements. The Employment Rights Act 2025 integrates this right fully and adds protection against dismissal or detriment for taking it.

Neonatal care leave applies where a baby is admitted to hospital within 28 days of birth and stays for at least seven continuous days. It can be taken at any point in the 68 weeks following the birth, giving families flexibility when they need it most.

For employers, the administrative task is recording the leave correctly and ensuring payroll reflects neonatal care pay — which is paid at the same rate as statutory paternity pay. Mellow's absence module includes a neonatal care leave category. When you add it to the employee record, the payroll engine adjusts the payslip accordingly. No one should be managing this in a spreadsheet.